Saputo completes acquisition of Dairy Crest

Canadian dairy processor Saputo has completed its acquisition of Cathedral City and Clover owner Dairy Crest, in a deal worth £975m.

The purchase, first revealed by Saputo on 22 February, represented a value of £6.20 per ordinary share in Dairy Crest.

Saputo said the acquisition would expand its international presence and enter the UK market by “acquiring and investing in a well-established and successful industry player with a solid asset base and an experienced management team”.​

“Dairy Crest is an attractive platform which fits with the company’s growth strategy,”​ Saputo added.

For the 12-month period ended 31 March 2018, Dairy Crest had revenues of about £456.8m and profit after tax of about £149.5m, which included exceptional items representing up to £98.9m.

During the six-month period ended 30 September 2018, the cheesemaker had revenues of approximately £224.9m and profit after tax of £14.5m.

‘Growth ambitions’​

Commenting on Dairy Crest’s agreement to be acquired by Saputo in February, chairman Stephen Alexander said: “The acquisition should enable Dairy Crest to benefit from Saputo’s global expertise and strong financial position to fulfil and accelerate its growth ambitions. ​

“The businesses have strong shared values and the board is confident that Saputo’s plans to invest in and grow the Dairy Crest business mean the proposed transaction is positive for all its stakeholders.”​